Outgrowers must hand over 26 per cent of their crop to the mill, and pay additionally for irrigation water, transport and inputs.
Many complain, but the company ‘rips us off’ and ‘cheats on price’, but sugar growers have little option, and are tied intimately into the company’s operation.
Tongaat Hulett makes considerable profit from its Zimbabwe business ($30 million in 2014), and land reform farmers are central to this.
As part of the rehabilitation of cane land, the company (via the Canelands Trust, and supported until recently by over 30 million euros in aid from the European Union as part of the sugar adaptation fund) subsidises the replacement of cane, and improvement of infrastructure.
In our Hippo Valley sample, the average plot size is 24.3 ha (with a range from 9.8 to 58.1 ha), with on average 20.9 ha under sugar.
Only four farmers (of 38) have centre pivot irrigation equipment, although everyone has access to canal water. Farm labour compounds exist both in the new resettlements and on the estate, from where labour for the range of sugar production tasks is derived.
The new outgrower farmers on land reform plots come from a mix of backgrounds, including teachers, extension workers, estate employees, as well as well-connected politicians and security service personnel.
Not everyone is doing well, and some recent arrivals have taken time to establish, but across our sample the levels of production and management are good.
Making a go of sugar production is however tough, as explained in one our 'voices from the field' videos. Organising inputs, hiring and managing labour, dealing with cash flow, and negotiating with the company is always a challenge.
But despite the early scepticism, the new farmers are by and large doing well, investing and accumulating, as well as providing employment and providing sugar for the profitable company mills.
The land reform in the sugar outgrower areas was not a ‘land to the people’ redistributive move to combat landlessness and poverty.
This was part of an accommodation of a middle-class demand for land, creating a very particular type of outgrower arrangement, quite different to other sugar outgrower relationships elsewhere in the region, as discussed in other papers in the Journal of Southern African Studies special issue.
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